BEDS, ESSEX & HERTS The TRUSTEES, ANNUAL REPORT and ACCOUNTS for the year ended 31 August 2023
BEDFORDSHIRE, ESSEX and HERTFORDSHIRE DisfRICT of the MEtHODIST CHURCH Year ended 31 August 2023 Trustees, Annual Report Contents Page Trustees, Annual Report............................................................. 3-14 Statement of Financial Activities................................................. 15 Balance Sheet................................... . . 16 Notes to the Accounts...............................................-................. 17-33 Declarations and Scrutiny. 34-35 Glossary of tenns CFB: Central Finance Board of the Methodist Church manages a Common Deposit Fund and a series of pooled investment funds for Methodist entstses in Great Britain 2nd provides investment advice to those entities. Church: a group of members from fewer than 10 to more than 3(yJ Circuit: a group of Methodist Churches near each other, typicalty be1en 10 and 30 CMTF: Circuf( Model Trust Fund Connexion- The Methodist Church in GB which indudes the Head Office in London at Methodist Church House. all Methodisl Oistricls, Circuts and Churches in Great Britain District: a group of contiguous Circuits, usually betsveen 15 and 30 DAF: District Advance Fund DPC: District Policy Committee FRS: Financial Reporting Standard HMRC: Her Majesty's Revenue and Custtjns MCF: Methodist Church Fund MMPS." Methodist Ministers. Pension Scheme PASLEMC: Pensions and Assuran Scheme for Lay Employees of the Methodist Church SOFA: Statement of Financial Acttvities SORP: Stalement of Recommended Pracb'ce TMCP: Trustees for Methodist Church Purposes. the Custodian Trustee ofall Methodist Model TTUSt property, including Legacies. Endowments and Accumulated Funds
BEDFORDSHIRE, ESSEX and HERTFORDSHIRE DISTRlCt ofthe METHODIST CHURCH Year ended 31 August 2023 Trustees, Annual Report Objectives and Activities The Bedfordshire, Essex and Hertfordshire Methc#Jist District exists to setve the mission of the Methodist Church of Great Britain. The District comprises 155 local Methodist churches in these three counties, grouped into 12 circuits that are served by a ministerial team of nearly 42.25 (full-time equivalent) presbyters and deacons. The District Synod is the prinapal govemance body of the District. comprising the ministers stalioned in the District plus a larger numbèr of lay representatives appointed by the circuits. There are a number of District offirS appointed to serve the work of the Synod in particular ways. The vast m8jortty are lay and ordained volunteers, who undertake District responsibilities in additSon to their other roles in ihe Church. The District officers are led by the District Chair, who is a presbyier appointed to serve the District full-time. The District employs part-time Safeguarding Officers, part-time Finance Manager, full lime District Discipleship Enabler. two part-time personal assistants and District Property OffIr to the District Chair. The District serves the mlssion of the Methodist Church by supportlng the work of its circurts and local churches and by exercising oversight over them. as specified under the Constitutional Practsce and Discipline of the Methodist Church of G81 Bntain. Principal Dlstrict activities include the deployment of ministers. ministerial development. continuing training for probationer ministers. strateglc financial grants to circuits and local churches in support of their misslon and ministy, and scruilny of govemance processes in the circulls. The Distrtct Synod meets at least twtc& in each year to fuifil its govemance and oversight responsibilities. As a registered charlty, the Synod takes seriously its responsibilities to the Ch8rity Commbssioners and adhares closely to the wblished guidanc8 on public benefrt. 2. Achievements and Perforniance During ihe church year ended 31 August 2023. the District Synod, together with the District Pollcy Committee {OPC} acting as tts executlve b(Idy, has continued to discharge tts governance responsibilities in accordance with the Constitutional Practlco and DisGipline of the Methodist Church. In addition, the District Synod has pursued specific objectives in accordanc6 With the priorities outlina in the Trustees, Annual Report for 2021-22. The District Synod met in representative session (comprising ministers and lay people) during the year to conduct essential business.. in September 2022, hosted by the Bishop's Stortford Circuit-, in April 2023, hosted by the South Bedfordshire Circuit. The Synod met in presbyteral session in March 2023, hosted by the Bishop's Stortford Circuit. The District Policy Committee met four times during the year. In September 2022 and June 2023, the DPC met in person at the district office. In November 2022 and March 2023, the DPC met via video conference. This pattem of Mting$ is intended to redu¢e travel costs and carbon emissions in accordance wth the districl's environmental policy, which was adopted by the Synod in September 2023. The District environment21 policy commits the District to work towards attainSng the Methodist Church's god of Net Zero by 2030. Accordingly, the DPC has revised the grants
BEDFORDSHIRE, ESSEX and HERTFORDSHIRE DISTRICtofthe MHODIST CHURCH Year ended 31 August 2023 Trustees, Annual Report policy to provide for grants to circuits and local churches for schemes to improve the energy efficiency of manses and church premises. In addition to the District Chairfs two part-time personal assistants based at the distrtct office, the District has continued to employ two part-time safeguarding officers, a full-time district discipleship enabler, 8 0.6FTE district property officer and a district finance manager (10 hours per week). Throughout the year, the district staff provided valuable support and guidance to circuits and local churches in their respective areas of work. Following the reloGalion of the district office in July 2022, this has been the first year in which the District Chair and his personal assistants have worked frorn Ihe Peek Business Centre, Woodslde, Dunmow Road, Bishop's Stortford. The office is conveniently located close to Junction 8 ofthe M11 motorway and a 10-minute walk from the Distiict Chair's manse. The office facilities are modem and spacious, allowing larger meetings to be held without the cost of hiring additional meeting rooms. All the circuits have met their financial assessment during the year with the result that the District has not suffered an unexpected loss of income. Circuits and local churches have mostly fully recovered from the effects of lost income from voluntary subscriptions and the letting of premises caused by the Covid-19 pandemic. The DPC, on behalf of the Synod, gave pemiission for six local churches to close during the year. In all cases. these closures were due to an insufficient number of church members to sustain their Sunday worship, mission, and governance. The Methodist Conference meeting in Birmingham in June 2023 gave pemiission for the Bishop's Stortford Circutt to be subsumed into the Herts and Essex Border Ecumenical Aa wtth effect from 1 September 2023. This represents a sensible rationalisation of governan arrangements. 2.1 Plans for 2023-24 In addition to fulfilling its trustee responsibilitl8s and discharging its governan functions, the District Synod with the District Policy Committee acting as its executive intends to.. (11 Arrange residential meetings for Circuit Superintendents [ce during the year, and a residential retreat for ministers stationed in the District in the first 10 years of Iheir ministry. (2) Arrange an induction day for those ministers (presbyters and deacons) and probationers new stationed in the District in 2023. 13) Become only the second Methodist dIrICt to have achieved an Eco-church bronze award. (41 RevSew the District environmental policy. 151 Review the post of district property officer. (61 Provide grants lo enable children and young people living in the District to participate in the 3Generate youth event to be held in October 2023. (7) Engage in a regional conversation with Ihe East Anglia District to find ways of working together which will produce economies and lead to rnore effeGtive ways of supporting circuits and local churches. (8) Plan for the transition to a single fvll-time post of District Safeguarding Officer on the retirement of one of the part-time safeguarding officers in March 2024.
BEDFORDSHIRE, ESSEX and HERTFORDSHIRE DISTRicf of the METHOD1 CHURCH Year ended 31 August 2023 Trustees, Annual Report Financial Review During the year the District reiVed total income of £503k {2021-22= £467k) and dispersed £693k12021-22-. £418k). To the resujting Deficit was deducted net unrealised loss of £-1 Ok {2021-22= £-16k) on investments to produce a net deficit of £200k (2021-22.. an excess of £32k). Total funds carried foNard are £1,338k {2021-22= £1,536k). It should be noted that the unrestricted resetves funded the purchase cost of the manse {£500k in 20061 which is now valued at £850k and, as a result, the unrestricted readily available reseNes total £279k (2021-22.. £487k, on a like-for-like basis) after taking account of commitments to future instalments of grant. It should be noted that the deflcit of £200k has been largely a resutt of adjustments upwards of short and long-teTm grant commitments by £167k and unrealised losses of investments of £10k. During the year grants of £192k were awarded compared to £83k in 2021-22. The trustees of the District have every reason to believe that the District is a going conrn. principally because Circuits continue to meet their assessmenls and the Distrtct has adequate reserves to cover a shortfall in anticipated income. There are no subsidiary undertakings. The Distrlct continues to hold the one freehold property being the Chairfs Manse in Bishop's Storttord. The District has the followng principal sources of funds.. Interest on investments Levies on the Circuit Model Trust Funds of Circuits within the District Assessments on Circurts within the District. These sums are used to administer the District and to provide grants to Circuits, Churches and individuals in the District so that they may embark on or Continue with projects that fulfil the mission of the District by bringing more people to Christ or by providing facilities that might enable this to happen. 3.1 Methodist Ministers, Pension Fund Trustees are aware that the Methodist Ministers, Pension Scheme is treated as a group defined benefrt plan. The net defined benefit cost is recognised by the sponsoring entity, The Methodist Church in Great Britain, as there is no contractual agreement or stated policy for charging the net defined benefit cost to individual entities, such as the District. The District recognises a cost equal to its contributions payable for the period. Further details in respect of these pension arrangements are disclosed in the accounts of The Methodist Church in Great Britain. 3.2 Investmont policy and perfomiance To comply with Methodist Standing Orders, monies for long term investment are lodged with the Trustees for MethDdist Church Purposes MCP). TMCP acts as custodian trustee for all real eslate held by Districts and for all large (individually over £20k) bequests and for the prOedS of sale of any property formedy owned by the District. These sums are invested in unttised investments or held on deposit. The capital returns are close to tracking the
BEDFORDSHIRE, ESSEX and HERTFORDSHIRE DISTRICT ofthe mHoDIST CHURCH Year ended 31 August 2023 Trustees, Annual Report movements in the FTSE100 index. The income mirrors the deposit rates available elsewhere. Both the Central Finance Board {CFBI and TMCP take into consideration social. environmental, and ethical considerations, both negatively and posftively, in establishing investment policy. Short term deposits are lodged directty with Ihe CFB and attract good rates of interest There are no benchmarks for the expected returns or appreciation on investments at TMCP and CFB. It is the Districys policy to m8nage the cash and investment resources of the District so that a rate of retum on Investment- both by way of dividend and capltal appreciation- is obtained at least as good as market rate considering the District's low appetite for risk. 3.3 Reserves pollcy The District has a reseNes pollcy covering all Its unrestricted funds which is reviewed annually. Although grants are made each year out of the District Advance Fund IDAF), f( is recognised that some grants will be paid by annual instalment5 and that there will be applications repeated in future years. The trustees seek to ensur6 that there is sufficient in the DAF to meet these anticipated requests and show those sums payable In 2023-24 as current liability and instalments due after the following year as long-lerm liabilities in the Balance Sheet. At the year end the unspent DAF balance designated, but not committed, for future grant-making amounted to only £15k. The minimum level of the Genèral Fund Is such as to pay for six months, payroll costs, and closing cos18 of staff redundancies, rent and the1Ske expenditure. At 31 Augusl 2023 this sum amounted to £150k (2021-22.. £124k) and Unrestricted undesignaled reserves at £279k. The trustees are, however, mlndful that future income from the Circuit Model Trust Funds {CMTFs) is not secure and il is judged prudent to retain a buffer beyond the quantified need of £150k. Furthemiore, some Clrcults may find it difficult to meet theSr fulure assessments. As In some previous years, if the aggregate sum collected from the CMTFS is not all given out as grants in the same year, there could be a return of levy to the Circuits. It is always expected that the balance on the DAF will decrease, year on year. The existence of substantial designated and undesignated reserves at Dlstrfct level should be considered by Circuits wilhln the District when they consider Ihe need for their own reserves which we feel continue to be stretched in this current period. 3.4 The mlx of funds Thé reserves held at the end of the ear were as follows.. 2022-23 £k 2021-22 £k Unrestricted funds General Fund District Advance Fund Total unrestricted lunds 15 214 1,337 Rock Tst a restricted fund 151 156 District Disciple Enabler &Property Officer (a designated fund) 55 43
BEDFORDSHIRE, ESSEX and HERTFORDSHIRE DisfRICT ofthe MEfHODIST CHURCH Year ended 31 August 2023 Trustees, Annual Report Total funds Totsl unrestricted funds Less.. Tied u in freehold 1,337 850 ro ert 1888ets 852 Total readll avallable reserves 279 487 As a general policy Trustees have agreed to reduce the level of reserves gradually over the foreseeable future and to do this either by awarding, in year, grants in excess of the amount of th8 levies from the CMTFS and, possibly, by not increasing the circuit assessments by the amount necessary to meet the budgeted costs and to maintaln the rèservès. The Trustees will continue to monitor how Ihls plays out during the post Covld-19 pandemic period. All funds are separately invested either with CFB or TMCP. No money is directly invested in property, securities or other forms of inveslment. The year-end financial position of the District is healthy in that its resources are not only sufficient to meet future known liabilities but also sufficient for the District to carry out its plans for the following year. 3.$ Purposes of the funds General Fund.. thls provides a reserve In case of major unforeseen expenditur8 In 8dministerlng the District. District Advance Fund.. this provides much-needed grants to assist Circulls, Churches and indwiduals as well as Ihg District in its work, much of which is wlth the wider Communlty. Rock Trust (a restricted fund).. the trustees are able to spend the income and they do so every year. 11 provide5 financial help to young people in part of the District and elsewhere who wlsh to attend residentl81 events. Benevolence Fund.. this is used to provide small sums of money to ministers and lay people In the District where it is believed that a financial gift would help relieve stress, of whatever form. The sums paid out in benevolence durlng thg year exceeded sums received from donor organisations speclflcally for benevolence in the same period. When the restricted fund was fully dispersed, benevolence payments were made out of the general fund. Designated Fund-This is an annual grant awarded to the District by the Connexion and District Grant Team on a 1..1 basls until February 2023 and from then on for the next three years to be wholly funded by the District Grant Team, for the employment of the District Discipleship Enabler. There is also a grant frorn London Mission Fund for the employment of the District Property OffIr for two years which began in 2022. 3.6 Collaboratlve arrangements with connected charities One of the District'8 main sources of funding was the assessments obtsined from each Circuit within the District based on the membership and staffing levels of the Clrcuit and this was used to defray most of the cost of administering the District. This sum amounted to £125k {2021-22- £127k).
BEDFORDSHIRE, ESSEX and HERTFORDSHIRE DISTRicf of the METHODIST CHURCH Year ended 31 August 2023 Trustees, Annual Report Each year the Dlstrict is allocated a sum by the London Mission Fund (LMF). In 2022-23 this amounted to £56k {2021-22'. £56k) which can be used to pay for or contribute to the cost of certain activities within the Districl. This sum is not remitted to the District and does not appear in the accounts of the District because the District acts 8s agent for the LMF. Instead, the District nominates some grant applications which can be met by the LMF and passes thes8 to the LMF so that the LMF can pay the grant directly to the grantee. Grants were awarded lo various projects around tt)e Distrlct. The District also obtained from each Circuit with a reserve, known as a Circuit Model Trust Fund ICMTF), a levy based on Ihe slze of the Circuits, CMTFS at the start of the connexional year (01 Septemb6r). In 2022-23 this sum was £131 k12021-22.' £108kl and was credited to the District Advance Fund. In addition to this figure there were General Reip1S of 1 Ok received during th8 year to bring the figure to £141 k. Furth8rmor8, £32k was received for W8rm Sp8ces Initiative grants under the Designated Funds The District holds no funds as custodian truste8. It does, however, quarterly rec81V8 from Circuits within the District the Circuils, contributions to the Methodist Church Fund {MCFI. These sums are collected as agent for the MCF and are passed to the MCF later in the same quarter. Funds received by the District as agent are not recognised as income or as an asset in the flnancial statements because th8 frjnds are not within the District's control. No fee is eamed in respect of this agency arrangement and the District incurs no cost through provldlng this arrangement. Trustees, Responsibilities For each financlal year ending on 31 August the Trustees are required to prepare financial statements that give a true and fair vlew of the District's financial activities durtng the year and of its financial positlon at the end of the year and to prepare an annu81 report for that year. In preparing these financial statements, the Trustees have.. selected suitable accounting policies and applied them consislently using the accruals method madejudgements and estimates that are reasonable and prudent followed the applicable SORP and accounting standard, SORP{FRS102) as updated, in¢luding FRS102 adopted the going concern basis. The Trustees are responsible for keeping proper accountlng records whlch di8close with reasonable accuracy at any lime the financial position of the Distrlct and enables them to ensure that the financial slalements comply with the law. They a also responsible for Safeguarding the assets of the District and ensuring their proper application under charty law, and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The Trustees are responsible for the maintenance and integrfty of the corporate and financial informalion included on the District's website. Legislation in the United Kingdom governing the preparation and dissemination of financial stalements and trustees, reports may differ from legislation In other jurisdictions.
BEDFORDSHIRE, ESSEX and HERTFORDSHIRE DISTRICT of the METHODIST CHURCH Year ended 31 Au8USt 2023 Trustees, Annual Report Structure, Governance and Management The District is an unincorporated associatlon and is governed by the Methodist Church Act 1976. the Deed of Union and the Model Trust Deeds ofthe Methodist Church and was registered wlth the Charity Commission on 1 Febru8ry 2010. 5.1 structure ClrcuSts are groups of Churches.. Circuits pay the stlpends of most minlsters and may employ lay (unordain8dl staff to SOTve the Churches in the Clrcuit., most decisions are made at or ratified by the half yearly Circuit Meeting. A District is a group of contiguous Circuits and makes its decisions at the half yearly Synods. The Methodist Conference meets once each year and is the supreme governing body in the Church. Overall control rests with the Methodist Conference. The Connexional Office implements decisions made by Conference and Is also responsibl6 for the stationing of presbyters and deacons (collectively known as ministers) in individual Circuits within the District. Connexional decisions are passed to the Chair of the District and th8 appropriate officers of the District for implementation. The District passes control down to Circuit level for local implementation by the Superintendènt Minister, ministerial staff and Circull Stewards, and authority Is delegaled lo the Circuit Meeting for certain matters. The Circuit Meetlng passes control down to Church Counclls for local implementallon by the presbyter, the Church Stewards and other offi[S, and aulhority is delegated to Church Councils as Managing Trustses. 5.2 Purpose of the Dlstrfct The Dlstrict is an expression. over a wlder geographical area than any Circuit, of the Connexional character of the Church. The purposes of the Melhodist Church are and shall be deemed to have been since the date of the union the advancement of.. the Christian faith in accordance with the doctrinal standards and the disclpline of the Methodist Church, and any charitable purposes for the t(m8 b8ing of any Connexional. District, Clrcuit, local or other organlsation of the Methodist Church, and any charitable purpose for the time being of any society or institution subsidiary or ancillary to the Methodist Church, and any purpose for the time being of any charity b8ing a charity subsidiary or ancillary of the Methodist Church. The primary purpose of this District is to advance the missSon of the Church in Bedfordshire, Essex and Hertfordshire.. by providing opportuntties for Circuits to work together and support each other, and by offering to Circuits resources of finance, personnel and expertise.
BEDFORDSHIRE, ESSEX and HERTFORDSHIRE DisfRicfofthe MEfHODIST CHURCH Year ended 31 August 2023 Trustees, Annual Report The District serves the Local Churches and Circuits and the Conference in the support, deployment and oversight of the various ministries of the Church, and in programmes of trainlng. 5.3 Governance The District operates wSthin a statutory framework of regulation and seeks to ensure that it follows Methodist Standing Orders. It relies on the Connexional Office al 25 Tavistock Place, London WC1 H 9SF to provide guidance on changes that could affect the Dlstricl. The members of the Dlstrlct Pollcy Commlttee IDPC) are annually appointed by a vot8 of the Synod for a continuous term not nomially exceeding six years. The Chair of District is ex officio chair of the DPC. When a position becomes vacant on the District Policy Committee. nominations are invited from ministers and lay members of Circuits within the District. The Chair of the District then share8 Wlth nominees whal the roles involve. If they wish to be considered for a role, their names and reasoned statements are tak8n to the DSstricl Policy Committee and the District Synod for appointment. Members may be either ministers or lay people attendlng Churches in the area covered by the District The District Policy Commtttee nomially meets four times each year and deals wlth roulSne and exceptional matters. It oversees th8 work of the Grants Committee, finance, property, the District office, the District manse, slalioning of ministers, safeguarding, aulhorisalions to presldeiat communlon, and extensions lo local preacher tralning. It also lialses wlth the East of England Learning Network. 5.4 Re8pon81bllltles of the Dlstrlct Pollcy Commlttee to fotmulate and promote pollcles whlch wlll advance the mlssSon of the Church In the Circuits and Local Churches and, in particular, to supeNlse the use of resources of personnel, propety and finance and to assist Local Churches and Circuits having exceptional problems to encourage inler-circuit and ecumenical co-operation to act in an executive capacity in matters remitted lo the Committee by the Synod to keep within ils puNiew all District concerns not dealt with elsewhere to contribute and respond, as th8 Gas8 may be. to the development of Connexlonal policies as reflected in the work of tha Conference and the Melhodlst Councll, and to carry out its other responsibilf(les with any such development in mind to be aware that the stipend of the Chair of the Disknct is set- currently by reference to average wages and the change over a year in the Consumer Prices Index- by the Methodist Conference as for all ministers within the Connexion constantly to be aware of the public benefit guidance issued by the Charity Commlsslon. iv vi vll io
BEDFORDSHIRE, ESSEX and HERTFORDSHIRE DISTRICT of the MEfHODIST CHURCH Year ended 31 August 2023 Trustees, Annual Report Reference and Administrative Details Name ofthe charlty The Bedfordshire, Essex and Hertfordshire District of the Methodist Church sometimes abbreviated to 'BEH District,. 6.2 Charlty regl8tratlon number 1133921, registered In England and Wales 6.3 Prlnclpal Offlce H17. Peek Business Cenlre Woodside, Dunmow Road Bishop's Slortford H8rt8 CM23 5RG 01279 657 195 www.behdistri .uk 6.4 Chalr of tha Dlstrlct Rev Dr David M Chapman from 1 September 2016. Reappointed 1 September 2022. 6.5 Secretary of the Synod R8v Zena Smith appointed from 1 September 2022. 6.8 As8iStant Secretary of the Synod IProsbyteral) Rev Caroline Weaver was appolnted 01 September 2021. 6.7 Dlstrlct Trnasurer No Replacement has yet been appointed but Mr Nlchodimus Kawadza was appointed the District Finan Officer on 1 September 2019 and later to District Finance Manager on 1 April 2022 to look after all the Dlstrlct's finance activities. li
BEDFORD5HIRE. ESSEX and HERTFORDSHIRE DIStRIOfthe METHODIST CHURCH Year ended 31 August 2023 Trustees, Annual Report 6.8 Names of trustses The following served as trustees throughout part or all of the year 2022-23 or were trustees at the time of this report being approved= Mr Bob Butcher (Grants Se¢retary). Appointed 01 September 2007 Rev Or David Chapman ex officio (Chair. ex off10). Appointed 01 September 2016. Reappointed 01 September 2022 Mr David Germany (County Representative Beds). Appointed 01 September 2011 Rev Mark Hammond (County Represenlatrve Herts). Appointed 01 September 2017 Rev Zefta Smith èx (Synod Secretsryl. Appointed 01 September 2022 Miss Marion Mear (Secretary to DPC)- Appointed 02 January 2018 to 31 August 2023 Mr Keith Norman (Lay Stationing Representative). Appointed 27 April 2013 Rev Tom Osbom8 {Ecum8nical Officer to Essex). Appointed 01 September 2017 Rev Rachael Hawkins {Depuly Chair of the District). Appointed 01 September 2022. Rev Chris Sandy {County Representstive Beds). Appointed 18 September 2021. Mrs Jenny Harris {County Representative Hertsl. Appointed 01 September 2020. Mr Steve Watson (District Propety Officer). Appointed 4 January 2022. Rev Christine Preece (Synod Elected Member-Essex). Appointed 17 September 2022 Mrs Shella Pollard (Methodist Council Representatwe). Appointed 01 September 2022. Rev David Jebb (Ecumenical Officer Hertfordshire). Appointed 01 September 2022. Mrs Ann Howlett-Foster (Eastem England Leaming Neork Regional Officer). Appointed 15 March 2022 to 31 August 2023. Mr Stuart Watkins (Learning and Development Officer). Appolnted 15 March 2022. Rev Cassandra Howes {Ecumenical Officer lo Beds). Appointed 1 September 2023. Mrs Angela Brydon {Districl DisCieshiP Enabler). Appointed 1 September 2023. Mr Steve Rogers {Secretary to DPCI. Appointed 1 September 2023. Most truste8s attended all meetings of the DPC to vthich they were entitled to attend in the year and the attendance rate for all 17 trustees who served throughout the year and all four meetings of the DPC during the year was 88%12021-22: 86Y.>. The Managing Trustees for the District are the members of the District Policy Committee. No trustee claims exemption from disclosure of his or her name here. 6.9 Chalr's PAS Miss Carol Griggs & Mrs Sarah Sutherfand 6.10 Bankers HSBC plc Town Centre Dane Street Stevenage Herts SG11BY Central Finance Board of the Methodisl Church 9 Bonhill Str88t London EC2A 4PE 12
BEDFORDSHIRE, ESSEX and HERTFORDSHIRE DISTRICT ofthe METHODIST CHURCH Year ended 31 August 2023 Trustees, Annual Report 6.11 Investment managers and custodian trustees Trustees for Methodist Church Purposes Central Buildlngs Oldham Street Manchester M1 1JQ 6.12 Independent Examiner appointed 16 September 2014 Vlncenl Chandler FCA FCCA of Moore Green, Chartered Accountants 22 Friars Street Sudbury Suffolk C010 2AA Approval8 The Trustees, Report and the Financial Statements were approved by th6 Dlstrict Policy Committee on 7 2024 and were, for information, presented to the Synod on 2024. Rev Dr Davld M Chapman (81gned) Rev Zen8 Smith (Signed) Rev Dr Davld M Chapman Chair of the District Rev Zena Smtth Synod Secretary Date.. Dale.. /2.3.ZOa<. 13
BEDFORDSHIRE, ESSEX and HERTFORDSHIRE D15fRicf of the METHODisf CHURCH Year ended 31 August 2023 Trustees, Annual Report Financial Statements The Financial Statements comprise: the Statement of Financial Activities for the year ended 31 August 2023 (page 15) the Balance Sheet as at 31 August 2023 (page 16) the Notes to the Accounts (pages 17 to 33). 14
BEDFORDSHIRE, ESSEX and HERTFORDSHIRE DIStRicf of the MHoDIST CHURCH Year ended 31 August 2023 Statement of Financial Activities for the year ended 31 August 2023 Distii¢t Advance tothe General Fund FLtnd cGourrt¥ Iunrestrlctedl IUnr68trlctsdl Ds•lgn8tèd Re8trlct8d Funds Funds Totsl 2022-23 Total 2021.22 In¢om& and End0ent81rom'. l Dorbatlon8 and legaclos 100 100 2 Income from Investm?nt• 9,471 20,400 1.(KJ8 30,GO& 7,034 3 In¢om• from ¢haritabJ• a¢tfviti A$6e8$m&nt8 on T¢ts 125.013 125.013 127.033 From Ctrcull Model Tru81 Funds 500 141,142 32.000 3,846 177.288 129,283 42,740 Conlrfbullon to the c051 of Ihe Chalr 46,723 45.723 CorbwIMal Advara & ProFfjty Fund 83,286 &3.286 118.477 Other 1.087 40.000 41.087 43,628 9 Totsl Incofflo 73,000 -4694.... 5.Q3,4Qg. Exp¢ndltur• on ¢h•rllabh a¢tlvlll¢•: 10 Grant8 and donatlons 2,089 358.904 32.000 302.993 138,116 11 Salarf8$ and asscclaled cost8. Inc ChBlr IZ Propety 13 Offlce expen8ei 14 Synod8. commlltees, Confer¢r IS Olhar ouigolnu8 220.130 220,130 32,488 192,613 27.488 32.486 14,497 1,803 4,884 20.844 26,489 10 11,320 11,320 12,381 15.130 15,130 23,387 16 Totsl 8xp8ndltur• 296,682. 360,867 692,903 17 Not unre8118èd ggln• on Ilxed as80ts 17 invo8th1onts .6,249 18 N•t Income -116,Y38. 31,&9 19 Tiqn81ofB botsYe8n lund 13 111300 -83.300 -28.0th) 20 Net rnovement In funda ?,rf9 .199,039 .199,698 R4¢ondll•tlon of fvnd$: 21 Total fvnd$ LYowJhl fomord 1 123 009 214,220 168 318 1,SJ6 096 1.504,127 22 TotÈl lundj carrtad lomrd 1.115,599 161.069 1.336.398 1.53&.096 15
BEDFORDSHIRE. ESSEX and HERTFORDSHIRE DISTRICT of the METHODIST CHURCH Year ended 31 August 2023 Balance Sheet as at 31 August 2023 Notes tg ¢h Accounts DlÉtriLt Advancè Fund General Fund De&lgnated Fund Restrl¢t8d Fund Total 3110812022 A Fixed assets b Tangible fLYed assets 14 851,31 851.314 851,972 In%Estments TMCP 15 125.397 551.090 151,069 827,556 Total ftxod aB8ets 976,711 561,090 O $].069 1,67L870 1,718.664 Current assets Deblor5 and Prepayments le 16.498 16,498 9,284 G Central Finante 8oaTd dep05tts h Cash Bt bark 17 126,118 8,544 54,549 180,668 186.633 3,991 17 Total currenta55Èts 161.161 FA549 20S.710 191908 Less.. Currerrt Ilabllbtl88 Creditors due in under one year k Granis payable in 202>24 Total current IlabSlltt95 18 12.273 12.2n 316.109 13,219 217,257 230,476 19 316.109 316,109 12,273 328,382 Nat currentas8etslllablllllos 16.109 -122,67? j 40,5S6 1 p Yotsl Hs88ts less CUTrert Ilabllidos 1,114599 21.8,981 151.Q69 1,556,198.] 1.68B,096 Les.. Long tsrm Ilabllltles Idu88ft8rmoTe than one y8arl Grants payable from 202425 219,800 219,800 152,OC¥J Net a888ts 1,115,599 151,069 1,336,398 5 1.13B,D96 1 Funds of the Dtstrlct Gw)ernl lunrestrttsrD DL8trfrJ Advance FurKJ lunreslrkledl 20.1 1.115,599 1,115,599 15,181 1,123,009 214.219 15,181 TotHI unrestricted fund8 1.130.780 1,337,228 Destgnated FwK15 21 54,549 54,549 42.549 Reslrfctsd Fund 21 151,Cfjg 151,069 166,319 Total Funds 1,114599 UrKlertr althority ofts thjstees gen a¢lh•rmeellng on 1@1.969 1,336,39B 1,536,0gF | Signed by Rev Dr Da M Chapman, Chalr ol Dtrfl* a1 sryed by Rovzena Smllh. Synou Secretsry Date ofsigning t16 of slgnir JJ 18ll• 17.3.202¥. 16
BEDFORSHIRE, ESSEX and HERTFORDSHIRE DISTRICT of the METHODIST CHURCH Year ended 31 August 2023 Declarations and Scrutiny Basis of Accounting and Accountlng Policies Accounting standard The financial statemenls have be8n prepared in accordance with SORP(FRS1021 as updated, being the current version of Accountlng and R8porting by Chan-ts.. Statgment of Recommended Pr8Ctice. See also v Accountlng framework, below. Public benefit entlty The Bedfordshire, Essex and Hertfordshire (BEHI District meets the definition of a public benefit entity under FRS102. Assets and liabilities are initially recognised at historical cost or transactlon value unless otherwise stated in the relevant accounting pollcy note{s) below. Ba818 Th858 accounts have b8on prepar8d on the basis of hlstorical cost except that investments are shown at their market value at the end of the year. The a¢cruals basis has been used and trustees present accounts th81 show a true and falr vlew of the District's financial position and activities. Contenl The financlal information presented Is relevant, r81iabl8, comparable and complete. Where esllmates are used these are based on experience, research and judgement. The accounts are expressed in £Slerling, rounded to the nearest pound. Rounding differences should be Ignored. Where the content of this year's accounts Ss dlfferent from that of the previous year, the comparative year's numbers have been adjusted and restated to be in the same format and on th8 sarne basis. Accountlng framework The financial statements hav8 be8n pr8pared under thè Charities Act 2011 in accordance with the 2014 verslon of Accounting 8nd Reporting by Charities.. Statement of Recommend8d Pr8Gtice [SORP(FRS102)] as amended, with the adoption of Sectlon 1A of Financial Reporting Standard 102, in replacement for the SORP'S 2005 version specified in its related 2008 Regulations and in accordance with the 'true and falr override, provision contained therein. Golng concern To the best of their knowledge and belief the truste8s confirm that there are no material uncertainties that would call into question the District's financial viability for at least 12 months from the date of approval of these accounts. vll Consolldatlon The District oversees the work of ministers (presbyters and deacons). and lay workers in Churches and Circuils within the District but has no power to control Circuits or Churches, ministers or lay workers except in extrem8 circumstances, none of which applied in the year. For this reason. the financial statements of Churches and Circuits within the Dlstrict are not consolidated into these financial statements. Income recognition Income is brought into account when it is more likely than not that the economic benefit of the income will be forthcoming. No attempt is made to measure the value of services donated by volunleers. Details of how the contribution to the cost of the District Chair has been determined appears in Note 4. A slmilar figure appears in the Expenditure at Note 7. 17
BEDFORSHIRE, ESSEX and HERTFORDSHIRE DISTRICT ofthe MHODIST CHURCH Year ended 31 August 2023 Declarations and Scrutiny Individual amounts categorised as OtherinGom8 in the SOFA will be shown separately if they are considered material. The District acts as agent in three matters.. the collection of quarterly assesstnents from ¢ircutts which are paid to the MCF. the payment of expenses of delegates from the District to the Methodist Conference. These items are shown in the accounts-see Note 5. the collection taken at the Spring Synod on behalf of the Methodist Ministers, Children's Relief Association. In all these matters the transactions are not reflected in the SOFA because, in acting as agent for the MCF, there is no obligation on the District to make up any shortfall in assessments from Circuits. Sums received as Circuit assessments cannot, therefore, be recognised as income in the District as they are the income of the MCF, not of the District. The value of time donated by volunteers is not recognised. Further information on this matter is provided in the Trustees, Annual Report. Expenditure This is recognised when incurred, regardless of the date of payment. Liabilities are recognised as soon as there is a legal Dr constructive obligation Gommitting the District to pay out reSoUrS and that payment becomes probable. Until then, any material contingent liabilities are noted. Grants Grants are made annually even when an application is for a recurrent grant over more than one year. A satisfactory report of substance from the individual or grantee body on the previous year's activities and outcomes is critically reviewed by the Grants Committee and Is neSSary to trigger payment of any further instalment. Grants that are payable in the future and were committed at 31 August 2023 are shown on the Balan Sheet either as a current liability (where the grants are payable by 31 August 2024) or in Long Tem Liabilities lif payable after 31 August 20241. xi VAT Since the District is not VAT registered, expenditure is inclusive of VAT where charged by the supplier. Tanglble fixed assets These are capitalised if they can be used for more than one year, and individually cost at least £1000. For the current year the property is shown 8t its revalued amount. No depreciation is provided because the trustees consider the residual value of the manse building is not less than cost and the depieGiation would be immaterial. The property has been reviewed for impaimient and none is provided. Furniture and Fittings has been depreciated at 200/0 on a straight-llne basis. xill Investments The investments are in monetary assets and are held by the Trustees for Methodist Church Purposes (TMCP) as custodian trustees. The valuations, at market value, are those provided by TMCP. The unrealised gainsllosses arising on investments at the end of the year are shown as incomelexpenditure in the SOFA and in Note 22 below. 18
BEDFORSHIRE, ESSEX and HERTFORDSHIRE DISTRicf of the METHODIST CHURCH Year ended 31 August 2023 Declarations and Scrutiny xlv Debtors and Credltors. Bank and Cash Debtors are Stated at the amounts owed to the District or prepaid by the District. Credttors are initially recognised at settlement Bmount after any trade discounts, where normal credtt terms apply. or at Ihe amount advanced to the District. Subsequently, creditors that are current liabilities are measured at the cash or other consideration expected to be paid. The liquid funds of bank balances and deposit 8ccount balances ar& shown at the realisable values. xv Loans Where concessionary loans (i.e. free of Interest) are made to {or received by) the District to further its charitable purposes, and are repayable after more than one year, they are initially recognised at the amount paid (or received), with the carrying value adjusted in subsequent years to reflect repayments and any accrued interest, adjusted for any impairment, if necessary. ere there Is obJective evidence of impairment, an immediate Impairment loss is recognised in the SOFA. Subsequent reversals of an Impairment loss that objectlV81y relate to an event occurrlng aftér the Impairment loss was cogniSed. are re¢ognised immediately in the SOFA. xvl Mothodl8t Church Fund The Distrlct acts as agent for the Methodist Church Fund IMCF) by collecting Its assessments on Circuits and does not, therefore, include the assessm8nts Iri the SOFA. If a Circuit is late in paying its MCF assessment lo the District but such sum is received before the quart6riy transfer to the MCF, the amount paid late wlll be shown as a debtor in the Distrtct's accounts. xvll Funds The trustees have adopted a policy ft)r all unrestrlcted reserves whlch is that, over the medium term, there should be a gradual diminution In the balance in each fund. This includes all unrestricted reserves (the General Fund and DAFI but not the restricted fund8 being The Rock Trust Fund and the Bènevolence Fund. There is no Endowment Fund. XVEII Chalr's man8e ¢08ts The District is reqtsired to provlde resldential accommodation for the Chair and hls famlly Thè District bears the cost of repalrs, malntenance, buildings Insurance, Council Tax and water charges for the Chair. Note 8 below discloses the aggregate cost to the District of these elements. Assessments on Clrcuits The District is made up of the following Circuits.. North Bedfordshire South Bedford5hire Colchesler Tendring Chelmsford Soulhend and Leigh South Essex Herts and Essex Border Ecumenical Area stAlbans and Wewn Wesl Hertfordshire and Borders North Hertfordshira Bishop's Slortford-until 3110812023 344 34-7 34-10 34-11 34-12 13 34-14 34-15 34-18 19
BEDFORSHIRE, ESSEX and HERTFORDSHIRE DISTRicf ofthe METHODIST CHURCH Year ended 31 August 2023 Declarations and Scrutiny All Circuits paid their assessments to the Dlstrlct and to the MCF during the year. An assessment on Circuits is annually detemiined by Districts by reference to the number of stsff {both stipendiary and lay workers involved in mission) in the Circuits and the number of Church members but may also take into account a Circult's ability to pay. Contributions to the Methodist Church Fund (MCF) In additlon to the assessments on the Circults to help defray the costs of running the Distrtct. the District acted as agent for Ihe Melhodlst Church Fund whlch levied assessments on the Circuits in thls District totalllng £497k (2021-22.. £500kl all of which were collected and paid over to the MCF in the year. No balance was held at the end of the year,. no fee is received for this service which is performed at n8arly nil cost to the District. These sums collected for and remitted to the MCF do not appear elsewhere In these financial statements. Cost of Chalr and Trustees The Chair of District chairs meetings of the District Policy Committee IDPC}. The members of the DPC are the trustees of the District. The stipend, employer's NIC and employer's Pension contribullons of the Chair of District are paid by the Methodist Connexion. The Chails other costs are met mostly by the Distrfcl, 2022-23 2021-22 Stipend of Chair of Dlstrfct, Rev Dr David Cha Employer's National Insurance Contributions er's ension contributions District Chair Allowance Com in Mlsl Allow Once off Grant Cash cost aid b th8 Connexlon Chair's ex enses Total cost man 26,928 3,644 7,243 25,824 3,343 8,947 176 171 see SOFA 42,740 7,314 Slnce the stipend-related costs above (i.e., £45, 723., 2021-22.. £42.740) are borne by the Connexion, they appear both in Ihe Income of Ihe District and the Expenditure of the District (See Note n. The aggregate expenses of the Chair's accommodation were £7,314 (See Note 8) making the total cost of his emoluments £53,037 (2021-22.. £48.862). The Chair of District is the sole paid key management person and Is supported by members of the DPC. No accrual is made for the Chair's entitlement to a sabbatical as he would continue to be paid during his sabbatical and Ihere would be lrttle additional cost incurred by those taking on Ihe Chairfs responsibilities In the short temi. 20
BEDFORSHIRE, ESSEX and HERTFORDSHIRE DISTRICT of the METHODIST CHURCH Year ended 31 August 2023 Declarations and Scrutiny 4.1 Payments to trustees It is District policy to off8r to reimburse members of the District Policy Committee and others involved in the administration of District affairs for expenditure properly incurred in carrying out their duties. The Chair of the District undertakes the primary executive role within the District. Apart from the Chair of District and the District Property Officer no member of the District Policy Committee was in receipt of any payment for work undertaken on behalf of the District. although certain travelling and administration costs were reimbursed whenever this was requested. One member of the trustees is an employee of the Dislrict. Travel expenses have been reimbursed to some 6 {2021-22- five) trustees Imembers of the District Policy Committee {DPC)I who, in aggregate, have received the c05t of travel incurred in attending meetings of the DPC and this amounted to £285 (2021-22: £391). Other Income The District does not undertake fundraising for its own purposes, other than as noted below. other income1£1,087 (2021-22- £3,628)] in the SOFA includes- 2022-23 2021-22 From MCF for costs of delegates from BEH attending the annual Methodist Conference 893 1,99g Thorley Parochial Church damage deposit reftjnd HSBC Refund 110 1,564 65 83 Total 1,087 3,628 Each year the District Synod invrtes donations from the members of Synod for the Methodist Ministers, Children's Relief Association. The amount donated and paid over in the year was £49 (2021-22: £0). Designated Fund-A grant of £40,000 was received from the London Mission Fund for the employment of the Distri¢t Property Offir. 21
BEDFORSHIRE. ESSEX and HERTFORDSHIRE DISTRICT ofthe METHODIST CHURCH Year ended 31 August 2023 Declarations and Scrutiny Grants and Donations and Related Support Costs Grants and donations of £392.993 were made during the year {2021-22.' £136,116 In year). 2022-23 2021-22 From General Fund Benevolence Other In year grants Increase in liabilities Rock Trust 49 2,040 192,252 166,652 258 2.089 From DAF 132,968 358,904 From Restricted Funds 2,890 From Designated Funds Wami Spaces Grants 32,000 32,000 Total 392,993 136,116 The sum ofthe grants paid in the yearthrough the DAF was £192.252 (2021-22= £83.1551. Adjusting for increase in grant provision of £166.652 gives us a total figure of £358,904 shown above. 6.1 Expendlture on charltsble actlvltles through the Dlstrfct Advance Fund This fund leiVeS formulaically determined contributions from the Circuit Model Trust Fund5 held by Clrcuits within the District and redistributes the monies to grantees in the District through relevant grants as assessed by the District Grants Committee. During the year the following grants were made.. 2022-23 2021-22 2022-23 2021-22 Grants 44,476 Returns Net To Churches For Projects 30.057 12.688 Grants Returns 57,460 85.879 To Circuils Fof Ministy Rel PIA N?t Net To Institubons 101,936 92,018 3,000 89,016 1,300 1,300 192,252 32,788 For ui ment Grants Returns Net Grants Nel To others Other 76.316 5.307 46.647 To indwiduals 4.320 83,155 Total 192.252 83.165 The income ofthe ftjnd was £244,828 (2021-22.. £244,312) during the year. The charge to the SOFA is the sum paid in grants during the year1£192,252,' (2021-22.. £83,155)] add the upltft in the aggregate liabilities (current and long term) for ftjture instalments of grant 1£166.652 (2021-22- £49,813)] to £535,909 (2021-22.. £369,257). 22
BEDFORSHIRE, ESSEX and HERTFORDSHIRE DisfRICT of the METHODIST CHURCH Year ended 31 August 2023 Declarations and Scrutiny Designated funds received of £32,000 even though shown separately, were received through District Advance Fund. An amount of £82,000 (2021-22.. £50,549) was used ntrallY within the Di8tricL The Grants Committee is aware that grant applications must demonstrate public benefit. The support costs for grant-funding to third parties are insignificant (principally becaus6 the secretary of the Grants Committee is a volunteer and undert8kes the vast majority of this work) and are not separately disclosed. Salaries and Assoclated Costs Gross salaries paid to six part time and one full time employees12021-22.' seven) were as follows.. 2022-23 2021-22 Gross Employer's National Insurance Contributions Employer's pension contributions to defined contribution Schemes and death in service benefrt Total costs of 712020-21: 6)6xpart time&1xfull time staff Cost of Chair CFB char es TPT DC Life Assurance rentlShI levies Total staff c03ts 142 201 10,734 12g 961 8,723 20,523 10,261 173,458 45,723 148,945 42,740 see Note 4 247 702 220,130 246 632 192,613 Totsl weekty contracted hours for 6 part time staff (2022: seven) And one full time staff 148 148 No employee received employee benefits that totalled more than £60,000. There is no accrual for holiday pay as it is immaterial,. the holiday year ends on 31 August. All staff are paid at or above the living wage. Two of the six part time employees were engaged exclusively in safeguarding matters, provided secretarial assistance at the District office and one dealt with all financial matters. One part time staff dealt with propety matters in the District. One full time staff was the District Discipleship Enabler. 7.1 Penslons Most ordained presbyters and deacons are members of the Methodist Ministers, Pension Scheme (MMPS). This is a defined benefil scheme. The Supreme Court held in 2014 that Methodist ministers (which term includes presbyters and deacons) are not employees of the Church. For simplicity, however, when dealing with National Insurance Contributions and pension contributions, the terms 'employerf and 'employee' are used as they would be in an employing bo(ty. 23
BEDFORSHIRE, ESSEX and HERTFORDSHIRE DISTRICT of the METHODIST CHURCH Year ended 31 August 2023 Declarations and Scrutiny On the other hand, lay eTnployees are contractually employees and have the option of joining the Pension and Assurance Scheme for Lay Employees ofthe Methodist Church (PASLEMCI. This is a defined benefit scheme. and the employing Churches and Circuils contribute as employers to Ihis scheme. All our employees contribute to pensions schemes not administered on behalf of the Methodist Church. The BEH District has reIVed from The Pensions Regulator an acknowledgement of declaration of compliance in connection th the automatic enrolment duties. The Connexion accounts for both Methodist pension schemes and shows the figures in the annual Methodist Church in Great Britain accounts. The MMPS is in deficit but a plan for removal of the deficit is being implemented. It would be drfFicult to determine the liabilty that could fall on the BEH District and no attempt has been made to atiempt this valuation. Property Costs 2022-23 2021-22 District office, rent and services Chairfs manse Total 25,172 7,314 32,486 21,344 6,122 27,466 Office Expenses (General fund) and TMCP charyes 2022-23 2021-22 Printin osta Tele hone Insurance Safeguarding Inde endent examination Office relocation and rtitionin Other costs TMCP Char es Total charyed to General Fund TMCP char esl ments to Trustees Total e and statione 2,201 3.306 1,489 2,297 2,619 3,559 1,437 3,301 990 10,424 costs 362 14,497 6,347 20,884 24,668 2,197 26,489 Included in the other costs of £3,652 are website management costs of £831, Laptop data transfers costs for £180, Districl Office eleclrical works and plumbing repair8 of £1,171, Shredding fees for £165, District Office Stort Blinds and Shutters for £668. purchase of District fans for £190, Norwich Books and Music for £237 and the rest on miscellaneous expenditure. 24
BEDFORSHIRE, ESSEX and HERTFORDSHIRE DIThICT ofthe METHODIST CHURCH Year ended 31 August 2023 Declarations and Scrutiny 10 Synods, Committees, Conference 2022-23 2021-22 Synods& Committees The Methodist Conference Conference expenses reimbursed Chair's travel Dislrict Poli Total 3,049 3.053 893 6,209 1,999 7,075 234 12,361 Committee, as char 11,320 11 other Outgoings 2022-23 2021-22 Trainin Olher costs Dgpreciation Dlstrict ex enses Professional services Total 10,522 3,253 657 698 13,772 3,993 657 4.965 23,387 16,130 Professional services relate to all the fees for the new District Offices lease and the break notice fees for the Stansted offices. Included in the other costs of £3,254 are expenses for accountlng software expenses (£180), Finance costs {£484), District Discipleship expenses (£1,258), Propety Officer expenses {£1,204). 12 Investment Management During the year, the District paid £6,709 (2021-22-. £2,197) to TMCP, the custodians of the DÉstrict'8 investments (District Advance Fund, the Rock Trust and part of the General Fund). The sum of£6,709 was levied at 0.2'/0 on the value ofthe funds at the end ofthe previous year and is shown as partly allocated to the DAF (£1,663), Rock funds1£4,684) and General Fund (£362).. £1,663 and £4,684 as Office Expenses in the SOFA. (See Note 9 above.) The sum of £5,249 {2021-22: £8,285) represents a net unrealised loss on the invested funds of The Rock Trust. More information can be found in Note 21 Restrictad Fund. There was an unrealised loss of £4.951 (2021-22: £7,815) on part of the General Fund. The gross unrealised losses of -£10,200 {2021-22'. -£16,100>. 13 Transfers between Funds The transfer been funds shown on the SOFA represents sums that were transferred from one fund to another under the direction of the Irustees. 25
BEDFORSHIRE, E55EX and HERTFORDSHIRE DISTRICT of the MEfHODIST CHURCH Year ended 31 August 2023 Declarations and Scrutiny During the year£82,00012021-22: £50.549) was withdrawn from the District Advance Fund to contribute to the funding of the following.. training grants, district discipleship enabler, safeguarding and administrative assistance. Within the £82.000 figure above there was transfer of £42,000 which was done to the General Fund to meet the salarylexpenses of the District Discipleship Enabler. A transfer of £28,000 was done from the Designated Fund to the General Fund to meet the Districl Properties Officer costs. £1,300 was also transferred from the District Advance Fund to the General Fund for specific training grants. 14 Tangible Fixed Assets The value of the District manse. 1 Friars Wood, Bishop's Stortford, is believed to be considerably greater than its historical cost in 2006 shown in the accounts. The TruStS considered it prudent to show the property at its cuent market value of £850k, and a revaluation reserve has been created within the general fund to account for the increase in value from cost amounting to £350k. As the property ha5 been revalued no depreciation is required. Depreciation of Furniture and Fittings is 200/0 on straight line basis. Cost blfimd Revaluation blfwd Depreci ation Land Buildings Plant and machinery Total Cost or valuation Property Furniture & Fittin 180,000 300,000 20,000 500.000 350,000 850.000 3,286 503,286 180.000 350,000 1,972 Total 300,000 20,000 851,314 15 Investments with Trustees for Methodist Church Purposes The funds that support part ofthe General Fulld, the DistrictAdvance Fund and The Rock Trust are held by TMCP in the Trustees, Interest Fund orthe Managed Mixed Fund on which interest and dwidends are credited to the accounts. These are regarded as medium- and long-temi investments and are shown on the Balan Sheet as Fixed assets. TMCP is the Custodian Trustee of all Methodist Model Trust property and is held for and on behalf of local Managing Trustees lin BEH. the DPC) who are responsible for the day to day management ofthe property. TMCP ensures that. through providing guidance and acting under their direction, the Managing Trustees comply with charity law and Methodist law and polity as determined by the Methodist Conference. 26
BEDFORSHIRE, ESSEX and HERTFORDSHIRE DISTRI of the MEfHODlSf CHURCH Year ended 31 August 2023 Declarations and Scrutiny 15.1 Holdings at 31 August 2023 (2022) General DAF Rock Total Fund Trustees Investsnent Fund Managed Mlxed Fund Total 13,770 {10,3201 551,090 1583,476) 32,720 (32,721) 597.580 {626,517) 116,627 116,577 126,397 126897 118,349 123,598 151,069 156 319 234,976 240.175 827,666 866 692 551,090 583 476 16 Debtors and Prepayments All sums shown as Debtor$ on the General Fund at 1 September 2022 were received durfng the following year. All sums pald In advance at 1 September 2022 (with the exceptlon of rent deposttl w8re for activities or services related to 2022-23 and were charged to the SOFA in that year. It Is expected that payménts in advance at 31 August 2023 will be expensed in 2023-24. 2022-23 2021-22 Trade debtors ments Thorle Church-s nod Hlre de Insurance {108+114+611 Thorle Church-s nod Hlre Char District Office rent Probationa Retreat 2024-Share of costs Training rants (583+1,200) Retreat de osits 617+248+157+618+136 osit 200 218 567 283 es 1,838 4,518 1,783 1,776 Total repa ments MCF 22 Conference reimbursement Peek de osit-new District Offioes Total debtors 10,198 985 1,999 6,300 9,284 6,300 16,498 17 Central Finance Board (CFB) Deposits and Cash at Bank The District has one current account at HSBC plc, an authorised institution. The sum held on this account is immediately available. In addition, the District has a deposit account at CFB, a common deposit fund. Interest is earned on this account and is credited monthly.. the sums deposited can be withdrawn without notice and without loss of interest. The District has no other financial instruments. These sums are viewed as being liquid and are shown as Current assets on the Balance She8t. 27
BEDFORSHIRE, ESSEX and HERTFORDSHIRE DISTRICT ofthe METHODIST CHURCH Year ended 31 August 2023 Declarations and Scrutiny 18 Creditors 2022-23 2021-22 Credltors Independent examination Salaries and consultant fees Safe uardin Manse ex enses Other DC Posta e & rintin Telephone Synodslcommlttees Travel- DC DiStrt Discipleship Enabler ex enses Office ex enses TPT DC Life Assursnce ch8 Dislrict Offices-Electricit Pro ert Officor ex nses Total trade credltors AccrualslProvlslon Ecumenical rant Pension conlributlons T8xalion 8nd Soci81 Securil Thrg&dna8dl8 credit Total credltor8 1,100 103 960 103 2,182 26 82 90 102 142 733 137 18 83 103 48 862 DC 1st 159 120 21 66 33 49 93 es 56 4,777 7,825 185 452 760 12.273 7,825 165 452 13.219 It is expected that all sums accrued at 31 August 2023 will be paid during the year to 31 August 2024. 28
BEDFORSHIRE, E55EX and HERTFORDSHIRE DISTRicf ofthe MEfHODIST CHURCH Year ended 31 August 2023 Declarations and Scrutiny 19 Grant Commitments Expendlture on charftable activities: District Advance Fund Some granls are payable in annual instslments. The District expects to re1ve a report of the outcomes of the first {or subsequent) year's activities funded by the grant. Future instalments are shown as Current liabilities (rf payable within one year of 31 August 20231 and as Long-term liabilrties (where due after one year). The following anatyse8 are available.. 2022-23 2021-22 End of year commitments to pay one off grants or the first instalment in a future ear Anticipated second or subsequent instalments where the first instslment was aid in 2022-23 or earlier Total antlclpated commltment at 31 August 2023 11,300 80.000 524 609 635,909 289 257 369,257 Grants payable by year 2023-24 2024-25 2025-26 2026-27 2027-28 2022-23 2021-22 316,109 121.300 63,500 35.000 217,257 47.000 37,500 37,600 30,000 369,257 535,909 535.909 369.257 Total anticipated commitment at31Au ust 2023 535,909 369,257 After recognising the liabilities for future grants payable through the DAF, there is only a sum of £15k available for future grants. In the following year and subsequent years, further sums are expected to be credited to the DAF trom the CMTF levies of those years. The award of a grant by the Districl does not create a contractual relationship. No individual or institLrtion recerved grants ot such a magnitude thal they should be separately reported. 20 Unrestricted Funds 20.1 General Fund- balance £1,115,599 al 31 August 2023 {2022- £1.123.009) The purpose of the fund is for use at the discretion of the trustees in the furtherance of the general objectives of the District and which have not been designated for other purposes. About 76 % of this fund is held as a freehold property, the District manse for the Chair of District which is based on tts revalued amount of £850k (2022: Revalued £850k) included in the general funds balan above. 29
BEDFOFiSHIRE, ESSEX and HERTFORDSHIRE DISTRICTofthe METHODIST CHURCH Year ended 31 August 2023 Declarations and Scrutiny 20.2 Dlstrfct Advance Fund- balance £15,181 at 31 August 202312022". £214,219) The purpose of the fund is to receNe monies from investments and to pay grants by annual instalments on applications made. 21.1 Restricted Funds - balance £151.069 at 31 August 2023 (2022: £156,319 The Rock Trust. a restricted fund. exists to support residential and other activities undertaken by young people who currentty live in the fomier London NE District of the ethodist Church. All the fund's assets are managed by TMCP and the net income {after charges) is paid dired to the administrators of the Rock Trust. Grants are awarded by the trustees of the Rock Trust, being the trustees of the District. Movements during the year Vre as follows: 2022-23 2021-22 Market value at 01 Se tember 2022 Investment income received during the year Net unrealised (loss)gain on the value of Investments at the year end Grants paid during the year TMCP administration charge Reversal of ad. ustment to bid Market value at 31 Au ust 2023 156,318 4.684 164.608 3,355 -5.249 4,239 -445 -8,285 -2,890 469 161.069 166319 This is made up as follows.. CFB Mana ed Mixed Fund Trustees, Interest Fund Total 118.349 32,720 123,598 32,721 Markel v81uat]ons have been provlded by ThCP. The Benevolence Fund which Is now accounted for through the Genèral Fund stands at £822 (2022= £7711- wovides financial support to ministers and lay people in the District in n8ed of support. The Benevolen receipts and payments were processed through lh8 General Fund. (See page 15 on Donations income and Note 6 above on payments.) 21.2 Deslgnated Fund Deslgnated Fund- balance £54,649 at 31 August 2023. (2022: £42,549) This is made up as follows: District Disci leshi Enabler District Property Officer Total 2022-23 2021-22 20.549 34,000 54.549 20,549 22.000 42,549 30
BEDFORSHIRE, ESSEX and HERTFORDSHIRE DISTRicf of the MEfHODIST CHURCH Year ended 31 AuEU5t 2023 Declarations and Scrutiny These are designated funds received from Methodist Connexion and District Grants Team for the employment of the District Discipleship Enabler and from London Mission Fund for the employmenl of the Dislrict Property Offioer. 22 Fund Movements 22.1 Summary of fund movements 2022-23 Reslaled Balance at ol-se22 Note 1 Fund Income (Note 21 Change In LiabilitSesl Gains ExFnditure Transfers Balance at 31-Aug-2023 General Distrid Advance See Note 1 below Total unrestrlcted Rock Trust Designated Funds Total restricted Total Funds 1,123.009 181,894 -295,653 111.300 4,951 1.115,599 214,220 244,827 -193,914 -83,300 -166,652 15,181 1,337,229 156,318 42,549 198,868 1,536,096 426,721 4,684 72,DOO 76,684 503,406 489,567 4,684 -32,000 6,684 26,261 28,000 -171,603 -5,249 1,130.780 151,069 54,549 205.61B 1,336,398 -28,000 -28.000 -5,249 -176.852 Note 1 The DAF balances brought forward at the beginning of the year and carried forward at Ihe end of the year are after providing for future grants. The liability for ftjture grants at 31 August 2023 was £535.909 being an increase of £166,652 over Ihe provision brought forward. Note 2 The amount of£181,894 excludes £4,951 of net unrealised losses,. the amount of £4,684 excludes £5,249 of net unrealised losses,. the amount of £503,405 excludes £10,200 of net unrealised losses. 22.2 Summary offund movements 2021-22 Restated Balance at 01-Sep21 Note 1 Fund Income (Note 2} Change in Liabilitiesl Gains Expendrture Transfers Balanc6 al 31-Aug-2022 General District Advance See Note 1 below Total unrestricted Rock Trust District Enabler Total restricted Total Funds 1,143,645 178,834 -280,753 89.098 -7,815 1,123,009 154,776 244,312 4.507 -50,549 49,813 214,219 1,298.421 164,608 41,098 205,706 1,604.127 423,146 3,355 40,000 43,355 466.501 -365.260 -3,359 38,549 -57.628 -8,285 1.337.228 156,319 42,549 198.868 1,636,096 -38,549 -38,549 -3,359 -368.619 -8,285 5.913 31
BEDFORSHIRE, ESSEX and HERTFORDSHIRE DISTRICT of the METHODIST CHURCH Year ended 31 Au8USt 2023 Declarations and Scrutiny Note 1 The DAF balances brought forward at the beginning of the year and carried forward at the end of the year are afier providing for fLrture grants. The liability for future grants at 31 August 2022 was £369,257 being an increase of £49,813 over the provision brought forward. Note 2 The amount of£178,835 excludes £7,815 of net unrealised losses., the amount of £3,355 ex¢ludes £8,285 of nel unrealised losses,. the amount of £466,502 excludes £16,100 of net unrealised losses. 23 Analysls of Net Assets among Funds Fund balances at 31 August 2023 are represented by.. Unrestricted general and designated funds Restrict8d funds Total funds Tangible fixed assets Fixed asset investments Current assets Current Ilablllties Payables due after one ear Total 851,314 676,487 205,710 1328,382) 1219,800) 851,314 827,556 151,161 (328,3821 (219,8001 151,069 1,186.329 151.069 1,336,398 24 Related Partles None of the District trustees made donations direct to the District during the year or in the precedSng year. All of the District trustees are members of one or another Church and Clrcult within the District and may be trustees In IheSr Churches andlor Circuits. Related parties include the Methodist Connexion, Clr¢ults and Churches within the District, other Methodist Districts in Great Britain, the Methodist Ministers, Children's Fund, CFB and TMCP, except as reported in Note 5. All of these entities have their own trustees or directors. The following tsble shows tho receipts from and payments to related parties during 2022-23. 2022-23 Receipts 2022-23 Payments 2021-22 Receipts 2021-22 Payments Narn8s of Connected Organisations Donee.. Methodist Church Fund Donee.. TMCP Donor= Methodist Church Connexion Donor= Circurf(s within BEH (assessments) Donor= Circuits within BEH {levie51 Donor: Churches within BEH Donee.. Circuits within BEH (497,387> (8,743} {499,731) 8,743 622,400 83.286 100 626,764 116.477 306 (57,4601 (19,500) 32
BEDFORSHIRE, ESSEX and HERTFORDSHIRE DISTRICT of the METHODIST CHURCH Year ended 31 August 2023 Declarations and Scrutiny Donee: Churches within BEH {44,476) {1,300) (12,6881 1,060 Donee-. Individuals (re 3 Generate) Information about payments to trustees appears in Note 4.1. 25 Volunteer Contributions Every entify Iconnexion, District, Circuit, Church} within the Methodist Church in GB is heavily reliant on volunteers who contribute their skills, time and money in the furtherance of the work of the Church. At the BEH District the principal contribution is by setving on committees of the District that deal with mission, manses, finance, policy, grants, training, development, safeguarding. We are grateful to all of them frjr their help and commitment. No attempt has been made by this District to value the non-monetary contributions to the District in monetary terms. 26 Capital Commitments and Contingent Liabilities There were no capital commitments or contingent liabilities at the year-end {2021-22: Nil). 27 Lease Commitments The District has contracts or obligations for the following: New Office accommodation rent to be reviewed at the end of the third-year c.£17,OOOpa first year rent (2021-22), £21,OOOpa second year rent (2022-231 and £25,OOOpa third year rent (23-24). In addition, there are short temi obligations as follows- Reprographic equipment at the District office c.£881month Telephones at the District office and the District manse c.£2761month Security alarm system at the manse c.£261month Membership of the Friars Wood Residenls, Association c.£601month The total liability of these is not considered material. 28 Independent Examiner An accrual has been made for the fee of the independent examiner in the sum of £1,100 for the year (2021-22= £9601. The charge in the SOFA represents the provision for this yeaffs No additional services have been sought from or provlded by the independent examiner during the year. 33
BEDFORSHIRE, ESSEX and HERTFORDSHIRE DisTricf of the MEllioDisf (IIURCH Year ended 31 August 2023 Declarations and Scrutiny l LxNffirrn that these acLYuakbawJ a(Unts forthe year endgj 31 Augusi 2023 have been prepared from the reo)rds of the District and thatthey include all funds under the control of the District Poltcy Committee, being the trustees of Distriot Nichodimus Kawadza. DistrÈd Finance Mana Presentation to the District Pollcy Committee for approval I confimi that the Trustees Annual Retrt the Statement of Fwtancial Activits. the Balan Sheet and the Notes to the Accounts for the year erKled 31 Au ust 2023 vme wesented to the Distfict P0cY Committee at its meettng on 7 Mai I 2024. Signed.. O_a O4_ }1 WL 1819 Rw Dr David M Chapman, Chair of DislTiC Independent examinerfs report to the Trustees of the Bedfordshire, Essex and Hertfolsh1re District of the Methodist Church for the year ended 31 August 2023 The trustees are responsiNe for ensuring that the annual rekX)rt and aco)unts present a true and fair view ol the Dithct's income and eXpend[e forthe year and ofthe assets 8nd liabile$ at the balan sh* date. The ITUStees consKlerthat an audit Is not necessary for this year Ltndet s144 ofthe Charities Aca 2011 (the Chaitties Ad) and that an Indewdent examination is needed. It is my reswnsibilty to: examine the a¢Unts Un s145 of the Chariues A folk)w the rKocedures laKI down in the general Directiorts gtwen by the ChaTity Commission under s145(5)Ibl of the Chattties Ac( and state whether paTb¢>Jlar matters have o)me to my altenlh)n. Basis of independent examlnerfs report My examination vras LXTried out tn ac1x)rdan wth the general direcllons given by the Charity Commission. An examination includes a reviEW of the acrxjunting rerdS kept ty the District and a comparison of the accounts presented with those records. It also IncleS consideration of any unusual ttems, in nature or scale. or disclosure in the accounts seeknng explanations from the tnjstees conwning such matters. The proc&Jures undertaken do not provide all the eviden(£ that would be required in an audit and. consaquenty. no opinion is gNen as to whether the accounts present a tnje and fair ¥ieoV. My rew)rt ts limrted to those matters set oui in the statement bel¢yw.
BEDFORSHIRE, ESSEX and HERTFORDSHIRE DISTRI of the MEtHODIST CHURCH Year ended 31 August 2023 Declarations and Scrutiny Independent examinetrs statement I have c¥)mpW rry examination. I cnfftM tst no mabd mait&s have to my atentDn in nK)n examKin gmng Cat0 tekn thatin ary nrial resFWt 1. aCCntiry [(re ncrt W li IEW ofts (tsity as ty seoton 130 oflhe Artor 2. the WAJnts th) nc1ad wilh th rts., or 3. the actnts th JNXcCNnWilh aFFAb r4uirements the fonm 2nd content ofac(x)unts sd(xrt in ChtiEs (Arurts Ryrtsl R8Julab'ork$ 2008 other than ary requitEmentthatthe ants arxl is rM)t a matter whh attenn shcvld Ee in this rwt c¥(knto a pry undersrj of accA)unts to reach. I have not obtained independent verification of all invesknents with the Tnjstees for Methodist Church Purposes or held in other trusts. bank balanS and funds at the Central Finance Board of the Methodist Church which are indtvidualty in excess of £10.000 (ten thousand pounds) at the balan sheet date. Signed: Date: 13.03.2024 winnt Chandler FCA FCCA Independent examiner Moore Green 22 Friars Street Sudbury Suffolk C010 2AA 35